Austal Limited and Edge Total Intelligence Inc. (EdgeTI) have announced a strategic collaboration that will reshape the defence technology landscape in Australia and beyond. The agreement, finalised on October 30, 2025, sees EdgeTI acquiring Austal Australia’s Digital Technology Division in an all-share transaction, marking a significant step in both companies’ growth trajectories.
Under the terms of the deal, EdgeTI will establish a subsidiary in Perth, Western Australia, to house the newly acquired division. This move will allow EdgeTI to retain key personnel from Austal’s Digital Advanced Technology Division, who will focus on developing digital solutions for maritime, naval, air force, and broader defence customers. The acquisition includes proprietary software assets, such as a planning software product for aviation applications, a branched LUSI solution, and an enterprise asset management software suite tailored for marine applications.
Austal will transfer and license these advanced software assets to EdgeTI for continued development and commercialisation across defence, maritime, and asset-intensive sectors. In return, Austal will receive 9.9% of EdgeTI’s publicly traded shares at CAD $1.00 per share on closing, with no warrants issued. Should EdgeTI complete its proposed uplisting to NASDAQ or NYSE within the next twelve months, Austal will receive additional equity securities to maintain its 9.9% stake.
The partnership is expected to generate substantial revenue streams. Initial Statements of Work (SOWs) under a Master Services Agreement (MSA) are estimated to total AUD $4.1 million in annual recurring revenue (ARR), with a projected gross margin of approximately AUD $1.0 million. Additional SOWs could push monthly revenues to AUD $840,000 by year-end 2026. The collaboration also includes a teaming approach to drive growth and expansion, with Austal subcontracting EdgeTI for initial SOWs related to the transferred software.
This strategic alliance aligns with EdgeTI’s growth strategy and positions the combined entity as a sovereign-ready digital-sustainment partner for complex defence and industrial customers worldwide. The acquisition strengthens EdgeTI’s defence-grade digital capabilities, increases operational scale, and paves the way for its proposed uplisting to a major U.S. stock exchange.
Paddy Gregg, CEO of Austal Limited, emphasised the long-term strategic benefits: “This partnership allows EdgeTI to continue to develop its operations while supporting Austal in continuing to deliver technological capabilities to its key customers. It aligns us with EdgeTI as a long-term strategic partner positioned for global growth.”
Jim Barrett, CEO of EdgeTI, echoed this sentiment: “We are excited to welcome the Austal Digital Technology team and their proven platforms into the EdgeTI family. This strategic fit merges our real-time operational software with their deep defence domain expertise to deliver an unmatched digital twin and asset-management capability across air and maritime fleets.”
Mathew August, a leading defence technology investor in EdgeTI, highlighted the transaction’s broader implications: “Through this transaction, EdgeTI reaffirms its commitment to building a self-sustaining, sovereign defence and enterprise technology ecosystem, combining top-tier engineering, allied technology transfer, and global market access.”
The transaction is subject to regulatory approvals, including those from the Australian Securities Exchange and the TSX Venture Exchange. Once completed, it will create a dedicated digital arm within EdgeTI to support Austal’s shipbuilding missions and sovereign-capability objectives in Australia and the United States. This collaboration is poised to enhance platform scale, extend customer reach, and accelerate value creation, setting the stage for EdgeTI’s proposed uplisting and future growth.